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Diodes Incorporated Message Board

  • invbus invbus Oct 24, 2000 9:52 AM Flag


    How does KEM report blowout earnings and still drop in price. This market, still is not rational.

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    • Clemens is a jerk and Pat Bradley showed ass
      instead of class. We need a larger spread to make the
      players pay and maybe think about getting caught on the
      wrong side. Excuse me what was I talking about
      Kornokovia caused part of my bran to shut down. Ok lets see
      oh yea, if you look at the one day charts you can
      see how we are being played. Did I mention spread?
      We've been getting a spike up every morning and a
      little bump up at the close. People trying to get in
      position for the morning pop are buying at the end of the
      day. This morning no spike up but those players still
      made out. I'm expecting another nice move up at the
      end of the day. What I really like Kornhigher volume,
      higher volume higher prices. I hope all those morning
      players are thinking about getting in position for

    • it appears that both intl rectifiers and diodes
      are gaining share at on semiconductors expense.

      on semi seems to be focusing on ic's probably
      limiting capacity additions in older products.
      I am not

    • Ha,

      Got finished with my 15 min post and looked back at the intervening posts and laughed when I saw that we all are in complete agreement as to the issue here. ;)


    • Paybar_1,

      What is going on with KEM, VSH,
      National, etc are very important to DIOD right now. I
      believe all discussion has been related to how
      developments and announcements affect DIOD.

      If the
      related discussion is apropos, then it is appropriate


    • Zorb-

      You have hit on the exact issue that
      concerns me. What we have right now is an abnormal
      situation where demand far outstrips supply in a few select
      markets. For example, capacitors are in so much demand
      that KEM could significantly RAISE prices on its
      products (resulting in 1000% profit increase). Please note
      that this is an ABNORMAL situation. Once supply comes
      back in demand the price increase will be reversed.
      KEM is benefiting from the fact this capacity has not
      been increasing in the capacitor industry fast enough
      - a problem that Diodes does NOT have since it is
      one of the catalysts of increasing capacity in its

      The payoff of each strategy depends heavily on what
      happens with demand. If it slacks off, Diodes is left
      with excess capacity forcing it to slash prices to
      maintain volume (operating efficiency). However, if KEM
      doesn't increase capacity and demand stays high, a
      competitor will eventually increase capacity to capture more
      market share. Abnormally high profits will attract
      increasing competition.

      Unfortunately, as soon as
      one player starts adding capacity, you get the
      classic "Prisoner's Delimma" situation where YOU must add
      capacity so that you don't lose market

      Valuation Guy

    • Zorbanite,

      I am glad we are in agreement.
      I greatly appreciated your post and frank
      assesments of potential scenarios. I am very excited about
      the direction Chen is continuing to take with this
      company and am looking forward to the conference

      As you pointed out, capacity vs. demand is always a
      major key. With respect to this, we are at the mercy of
      the IRFs of the world. This cannot be avoided.
      However, DIOD has strung together 41 consecutive
      profitible quarters despite the many periods of mayhem the
      industry has undergone. DIOD is quite special in this

      Remember that Chen plans to make us the Tiger Woods of
      cockroaches and has the proven track record to do it

      I think we are both quite interested in hearing
      what Chen has to say. Thanks for your down-to-earth,
      rock solid input on the board.


    • what we need to understand about the capacity
      that diodes is adding is whether it really will get
      filled up.

      realize that when a shortage is
      happening everyone adds capacity expecting their customers
      who request it to fill it up.

      when business
      slows, capacity goes unfilled. customers are very rarely
      held liable for their forecasts.

      the trick is
      to add the right amount so that you don't have to
      lower prices to fill it.

      this is very hard to
      determine. e.g. to get an insight into what all the semi
      companies are adding, especially in discretes is virtually

      thats why is there is so much uncertainty when business

    • Ah, another immature basher.

      It's quite
      funny how some people are ignorant to the fact that
      studying and following other stocks (whether you own them
      or not) can have a significant impact on the stocks
      that *are* important to you.

      Keep throwing the
      darts buddy.

    • I do believe that diodes can and will gain market
      share. What we need to see is more announcements on
      industry leading new products and growth rates exceeding
      competition. that is what will drive market share gains, along
      with being recognized as a low cost provider, e.g.
      more investment in china.

      The problem to watch
      for is too much capacity being added in the industry
      by the international rectifiers and on
      semiconductors along with diodes and a few others. as long as no
      one goes crazy adding capacity then everyone makes

      when supply exceeds demand in this
      industry it gets ugly. margins deteriorate fairly rapidly.

    • its own message board? Use it. Thanks.

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